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Truck Driver Per Diem Don’t Lose It

Truck Driver Per Diem Don’t Lose It

Jan 23, 2018

President Trump signed the biggest overhaul to the United States tax code in more than 30 years.

The tax over haul will affect all American’s. Especially, the over the road truck driver. The good news is that the standard deduction has roughly doubled for all filers. The bad news is drivers that previously relied on the per diem tax deduction as a form of savings have lost their savings plan.

That is due to the elimination of the unreimbursed employee expense deduction. The per diem deduction was classified as an unreimbursed employee expense deduction.

Central Oregon Truck Company offers all drivers per diem pay. Per diem pay is not in addition to your weekly wages. It is a change in classification of wages earned to, reimbursed employee expense, eliminating the tax consequence associated with wages. Federal Income Tax, State Income Tax, Social Security Tax and Medicare Tax are not taken out of reimbursed business expenses, but are taken out of wages. Participating in a per diem program should significantly increase net take-home pay.

Most trucking companies provide company truck drivers a per diem program. However, many of them charge a fee for the program then force enrollment.

It Is Your Money. You Earned It. You Should Get to Keep All of It!

The fee reduces your take-home pay and increases the profitability of the trucking company by decreasing driver wage expense on the income statement. Drive for a company that doesn’t take your hard earned money, and call it a fee.

COTC Does NOT Charge a Fee for Per Diem

Under the old mileage plan $0.12 cents of base cents per mile was paid as a reimbursed employee expense for per diem. Following the change to Weekly Truck Driver Salary Pay per diem will be paid at a flat $68 per day for 5 nights out each week.